> I don’t understand how VC funds can be in the billions and yet outsiders must assume they do not know anything about: 1. bank failures in the US in the last 1

> I don’t understand how VC funds can be in the billions and yet outsiders must assume they do not know anything about: 1. bank failures in the US in the last 100 years 2. deposits being on a bank’s balance sheet, hence the terms credit and debit cards 3. creditor subordination in event of default Without offering judgment: VCs are concerned with many things that can kill the companies in their portfolio across multiple different verticals. I would assume a big part of how this happened is that of all the things that could kill their returns, banks were low enough on the list that they weren't regularly thinking about it. IMO there's a legitimate question about whether we believe it's good for one of the things VCs have to consider is bank failure risk as it will necessarily take attention away from other concerns more related to business and innovation.